HUNTSVILLE, AL -- For the first time in more than two years, home sales posted a year-to-year increase in Huntsville and the state.

Experts cited first-time buyers who were taking advantage of the tax incentive for first-time buyers which was due to expire at the end of next month.

The tax credit of up to $8,000 for first-time owners was originally set to run out Nov. 30, but Congress renewed it this month and broadened its reach. People who have owned their current homes for at least five years can now claim a tax credit of up to $6,500 for a home purchase. To qualify, buyers must sign a purchase agreement by April 30.

In Huntsville last month, there were 766 homes sold compared to 654 homes sold a year ago - a 17.1 percent increase. Also, sales increased month-to-month with 711 homes sold this past September, for a 7.7 percent increase of October over September.

Statewide, 3,589 homes were sold last month and 3,165 were sold in October 2008 for a 13.4 percent hike.

"October sales represent the first positive year-over-year change ... since July 2007 (27 months) which was 4.5 percent," Dr. Grayson Glaze, executive director of the Alabama Center for Real Estate at the University of Alabama, said.

Glaze also said the sales figures were a pleasant surprise for the month of October."The last time the month of October saw a positive percentage in sales versus a prior (October) was in October 2005 when it was 14.8 percent," he said.

The state also saw a 2.6 percent sales increase in October over September this year.

The median sales price was $173,100, down 7 percent from a year earlier and off roughly 2 percent from September. The median price for a home in Huntsville changed little from a year ago, falling 0.8 percent from $141,000 in October 2008 to $139,900 last month. However, the price fell 5.1 percent from September's $147,000.

Statewide, the median price was down 2.6 percent from October '08 ($121,818) to last month ($118,630) and 6 percent from September ($126,302).

In Huntsville, there were 6,022 homes listed last month, compared to 6,123 in September (decrease of 1.65 percent) and 6,381 in October 2008 (decrease of 5.6 percent).

Homes sold in Huntsville last month, stayed an average of 108 days on the market, compared to 94 days for those sold in September and 93 days in October 2008.